Business owners often focus the lion’s share of their attention on factors over which they can exert some control, such as overhead and budgets. This approach often yields benefits by padding profit margins. The domestic marketing environment comprises a number of factors that business owners retain little or no control over, yet ignoring these factors can mean catastrophe for their businesses.

Economic

The state of the economy improves or worsens based on a multitude of elements business owners cannot hope to substantively alter. Everything from rates of inflation to income levels contribute to the state of the economy. A recessionary domestic economy entails more limited discretionary spending. Businesses that deal primarily in luxury items for the middle class must expect less business and react accordingly, often with changes in the tone of marketing away from naked consumerism. A growth economy, on the other hand, typically signals that companies can adopt more consumerism-driven marketing to go along with the availability of discretionary spending money.

Technological

The degree and sophistication of the domestic technological infrastructure can impact marketing in profound ways. A nationwide system of cellular towers that can provide Internet service on smartphones, for example, makes mobile marketing a viable option. The widespread availability of high-speed Internet services makes social media and video viable choices for delivering marketing messages. In places where the technological infrastructure cannot support these, older technologies and traditional marketing approaches, such as radio, television and print ads will dominate.

Cultural

Cultural factors, such as beliefs about appropriate lifestyle, shape what your business can reasonably offer and to whom. An Amish community, for example, will not respond to electronic equipment, such as computers, in much the same way that urban dwellers will not respond to ads for horse-drawn plows.

Social

Social factors, such as love of sports, impact the domestic marketing environment. For example, any retail store in a city with a professional sports team will benefit from carrying team products, as the team represents part of the social fabric of the city.

Competition

The level of competition in the market also plays a role in how a business markets itself. In a tightly contested industry, newcomers may look for a niche in the industry ignored by existing business. If a business faces little competition, it can brand itself in whatever way seems most viable, whether as the cost leader, the quality leader or service leader, for example.

Political

The political conditions impact the domestic marketing environment considerably. A highly conservative government will likely restrict, formally or informally, products it views as promoting lifestyles contrary to conservative values.

Legal

Most governments, national, state and local, pass laws restricting particular trade practices, production methods and materials. Businesses must adhere to such regulatory constraints or face legal action, such as fines.